"LUXURY Italian fashion house Versace has confirmed it had suffered a loss in profits over the past year. Revenues of the business reportedly decreased by 19 per cent with losses widening to £41 million.
Losses before interest, taxes, depreciation and amortization totalled £1.87 million. Giangiacomo Ferraris, ceo of Gianni Versace SpA, credited the losses to last year's slump in the luxury goods market and a rigorous restructuring plan.
"Besides the general weak demand, the results were influenced by a reorganization of our sales network via the closure of unsatisfactory relationships or ones that weren't in line with the new product strategies," said Ferraris to WWD. "The added value of this strategy will be evident in the future."
He insisted all implemented restructuring was important and beneficial to the Versace brand.
"They were totally necessary to give the brand new success and make it competitive," said Ferraris."
ARTICLE SOURCE: British Vogue
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